Luxottica Group, S.p.A. (LUX)

Selling and advertising expenses (including royalty expenses) increased by Euro 12.5 million, or 2.4 percent, to Euro 542.1 million for the three-month period ended June 30, 2009 from Euro 529.6 million for the same period in 2008, primarily due to the increases in selling expenses of Euro 27.1 million partially offset by the decrease in royaly expenses of Euro 5.2 million and advertising expenses of Euro 9.4 million. The increase of selling expenses is due to currency fluctuations, in particular due to a stronger U.S. dollar compared to the Euro. As a percentage of net sales, selling and advertising expenses decreased to 38.7 percent for the three-month period ended June 30, 2009 compared to 39.1 percent for the same period in 2008.

General and administrative expenses, including intangible asset amortization, increased by Euro 16.1 million, or 10.3 percent, to Euro 172.0 million for the three-month period ended June 30, 2009 from Euro 155.9 million for the same period in 2008. The increase in general and administrative expenses is mainly due to currency fluctuations, in particular due to a stronger U.S. dollar compared to the Euro. As a percentage of net sales, general and administrative expenses increased to 12.3 percent for the three-month period ended June 30, 2009 compared to 11.5 percent for the same period in 2008.

Selling and advertising expenses (including royalty expenses) increased by Euro 120.8 million, or 6.2 percent, to Euro 2,069.3 million in 2007 from Euro 1,948.5 million in 2006, primarily due to increases in sales, for which we were required to pay additional commissions to sales associates and royalty expenses to designers of our licensed brands of Euro 65.7 million and Euro 25.1 million, respectively. Euro 28.7 million of the increase is attributable to the inclusion of Oakley’s selling and advertising expenses (including royalty expenses) for the period from the acquisition date. As a percentage of net sales, selling and advertising expenses remained flat at 41.7 percent both in 2007 and in 2006.

General and administrative expenses, including intangible asset amortization, increased by Euro 3.8 million, or 0.8 percent, to Euro 487.8 million in 2007 from Euro 484.0 million in 2006, primarily due to an increase of Euro 16.9 million attributable to the inclusion of Oakley general and administrative expenses, including intangible asset amortization, for the period from the acquisition date and was partially offset by a one time gain of Euro 20.0 million due to a real estate sale in Milan, Italy in May. As a percentage of net sales, general and administrative expenses decreased to 9.8 percent in 2007 from 10.4 percent in 2006.

Selling and advertising expenses (including royalty expenses) increased by 11.0 percent to Euro 1,948.5 million in 2006, from Euro 1,755.5 million in 2005, primarily due to increased net sales. As a percentage of net sales, selling and advertising expenses decreased to 41.7 percent in 2006 from 42.5 percent in 2005, primarily attributable to a reduced commissions percentage relative to sales earned by the wholesale sales force and to lower store costs in the North American retail business leveraging the fixed cost store structure by an increase in same store sales. As we integrate the newly acquired stores in both Canada and China, we expect to further realize a reduction in selling expenses as a percentage of sales.

General and administrative expenses, including intangible asset amortization, increased by 14.1 percent to Euro 484.0 million in 2006 from Euro 424.3 million in 2005. This includes approximately Euro 48.0 million of expense relating to stock options expensed in accordance with SFAS No. 123(R), which we adopted on January 1, 2006, as compared to Euro 22.7 million in 2005 (calculated according to APB 25).  As a percentage of net sales, general and administrative expenses increased to 10.4 percent in 2006 from 10.3 percent in 2005.

Selling and advertising expenses (including royalty expenses) increased by 9.9 percent to Euro 543.7 million during the second quarter of 2006, from Euro 494.7 million in the same period of 2005.  As a percentage of net sales, selling and advertising expenses decreased to 42.0 percent in the second quarter of 2006 from 43.2 percent in the same period of 2005, primarily due to a reduction of commissions as a percentage of sales, to the sales force in the wholesale division, and to lower store costs in the

20

North American retail division, as well as increased net sales in the North American retail division due to the fixed cost store structure.

General and administrative expenses, including intangible asset amortization, increased by 17.2 percent to Euro 141.5 million in the second quarter of 2006 from Euro 120.8 million in the same period of 2005.  This includes the effect from the adoption of SFAS 123-R of approximately Euro 11 million.  As a percentage of net sales, general and administrative expenses increased to 10.9 percent in the second quarter of 2006 from 10.5 percent in the same period of 2005, primarily due to increased consulting expenses associated with Sarbanes-Oxley compliance and increased human resources headcount and expenses.

Selling and advertising expenses (including royalty expenses) increased by 16.9 percent to Euro 485.2 million during the fourth quarter of 2005, from Euro 415.0 million in the same period of 2004. As a percentage of net sales, selling and advertising expenses decreased to 43.4 percent in the fourth quarter of 2005 from 43.8 percent in the same period of 2004.

General and administrative expenses, including intangible asset amortization, increased by 20.2 percent to Euro 127.8 million in the fourth quarter of 2005 from Euro 106.3 million in the same period of 2004. As a percentage of net sales, general and administrative expenses increased to 11.4 percent in the fourth quarter of 2005 from 11.2 percent in the same period of 2004. The restructuring of Cole operations is

19

Selling, royalty and advertising expenses increased by 28.6 percent to Euro 415.1 million during the fourth quarter of 2004, from Euro 322.7 million in the same period of 2003. Euro 110.2 million of this increase is attributable to the inclusion of Cole in our results of operations. This increase was offset by the weakening of the U.S. dollar, which decreased U.S. selling, royalty and advertising expenses by Euro 34.0 million.  As a percentage of net sales, selling, royalty and advertising expenses decreased to 44.1 percent in the fourth quarter of 2004 from 44.9 percent in the same period of 2003. This decrease as a percentage of sales is primarily attributable to the increase in sales in the North American retail division without a corresponding increase in these costs due to the fixed cost sales structure of the retail operations.

General and administrative expenses, including intangible asset amortization, increased by 48.9 percent to Euro 106.3 million in the fourth quarter of 2004 from Euro 71.4 million in the same period of 2003.  Euro 24.6 million of this increase (including the amortization of its intangible assets of Euro 4.5 million) is attributable to the inclusion of Cole in our results of operations. This increase was offset by the weakening of the U.S. dollar, which decreased U.S. general and administrative expenses by Euro 7.0 million. As a percentage of net sales, general and administrative expenses increased to 11.3 percent in the fourth quarter of 2004 from 9.9 percent in the same period of 2003. This increase was primarily due to the consolidation of Cole’s results in our results of operations. The restructuring of the Cole operations is underway and it is expected that the general and administrative costs of the Group will decrease as a percentage of sales during 2005.